Oil, gas output in Mahakam block exceeds target

Oil and gas production at the Mahakam block in East Kalimantan during the first semester of this year exceeded target set in the 2015 work plan and budget, Bisnis Indonesia reported on Thursday.

The paper quoted as saying Noor Syarifuddin, VP for Geosciences and Reservoir at Total E&P Indonesie, the current operator of the block, that gas production during the January-June period reached 1,670 mmscfd, slightly higher than the 1,645 mmscfd target.

Meanwhile, oil production was 68,000 bpd, higher than the 65,000 bpd target.

Arividya Noviyanto, VP for Human Resources and Corporate Communications, said that investment plan for this year has been proposed at US$2.3 billion, lower than the initial plan of $2.4 billion due to the current drop in oil price, but the upstream oil and gas authority SKK Migas has yet to approve the revised version.

Arividya said that Total would try to achieve production target this year despite the lower investment through efficiency measures.

He added, however, that gas output next year is projected to decline to 1,400 mmscfd due to natural factor of aging wells, and is not related to the Indonesian government?s recent decision to transfer 70 percent of interest in the Mahakam block to state-owned oil and gas firm PT Pertamina when Total?s contract over the block expires end of 2017. The remaining 30 percent will be handed over to Total and its partner Inpex Corp. Total has yet to decide whether to accept the government?s offer.

Total plans to further cut down investment next year to $1.5 billion, which will affect drilling programs. Total plans to drill 107 wells this year, dropping to 77 next year. (*)